Even with the life settlement industry growing steadily, with a market value of billions of dollars, several myths about it and life settlements in general persist. These two myths are the “it’s not worth it” myth and the “it’s not safe, you’ll get ripped off” myth.

More specifically, these myths can be true in some life settlement engagements and situations, but painting the whole life settlement industry with such a brush and dismissing life settlements as a possibility means that you might be leaving a lot of money on the table. Life settlements can be a lucrative source of immediate cash for retirement and just as safe as when dealing with established financial institutions – there are just a few things you need to remember and take into account when considering selling your life insurance policy.

First of all, due to their relative obscurity, financial advisors still tend to think of life settlements as something not worth exploring. That is if those financial advisors are familiar with life settlements at all. They may be dismissive of the idea, saying that it has nothing to offer that “simpler,” more “reliable” financial deals don’t have. These are misinformed opinions which can keep you from making a large amount of money from the sale of your unneeded or unwanted life insurance policy. Every year, more than $100 billion in life insurance face value lapses because policy owners don’t know that they can sell their policies, or are talked out of it by well‐meaning people who don’t know any better. On average, according to the Life Insurance Settlement Association (LISA), policyholders receive from four to seven times more through a life settlement than the amount offered by their insurance companies as the cash surrender value of their policy. That means that more than $100 billion is being forfeited to insurance companies every year. Life insurance is an asset like any other that can be liquidated and put to better use to improve the life of the policyholder immediately.

That is the key takeaway when weigh ng up whether selling your life insurance policy is right for you – doing your research and comparing offers before you decide to go forward is critically important to get a good deal.

The second misconception about the life settlement industry is that it is unsafe and unregulated. This is a holdover from the early days of the viatical and life settlement industries when regulations were indeed laxer, and unethical brokers took advantage of desperate people to make money for themselves. Nowadays, however, the industry is highly regulated in almost all US states and is represented by national and international associations of those involved that strive to educate and self‐regulate. Out of the 50 US states, life settlements are regulated in 42 of them as well as in Puerto Rico. This provides more than 90% of the US population with judicial protection when dealing with life settlements.

Of course, precautions should be taken to ensure as smooth a transaction as possible. Different people have different worries about life settlements. Some are worried about their personal information, such as medical records, being shared or sold by the life expectancy underwriters or buyers of the policy to other third parties. Others are concerned about receiving the money, or hidden brokerage fees.

For all of these concerns, the answer is the same: do your due diligence and defend your interests. This means discussing with a broker and potential buyer of your life insurance policy who will have access to your medical records. It means making sure that the full payment amount is placed in escrow before the transfer of the policy to the new owner. It means making sure that the broker you use lays out all their fees or the commission they take on a successful deal. And it means getting all of the above‐mentioned things in writing. Once you have the documents and contracts drawn up, you will be protected by laws both general and industry‐specific. The main thing to worry about is negotiating as good a deal as possible for yourself, as the “Wild West” days of the industry are over.

​In conclusion, life settlements often are – for the seniors who know about and take advantage of them – lucrative financial engagements that take place within an industry that is highly regulated in the overwhelming majority of the United States. Dismissing them out of hand as bad deals taking place in a shady industry is an attitude better left out of the analysis of your financial situation and what you can do to improve it. When done right, life settlements can be a great way to liquidate a life insurance policy you don’t need or want anymore and receive a handsome sum of cash in return – cash that you can use to boost your quality of life, pay off debts, or fund other assets.

Are you a person with a small monthly income? Are you a person with a fixed monthly income? You must be with a twisted financial problem. In this context, you definitely need some fast loans but if your credit history is not very good, borrowing on the bank is the last option you want.

Fortunately, now is the Internet era where you can search for anything (not just information) from the Internet. You can search for your loan (instantly) from the Internet and I am sure, No Guarantor Loans is what you need.

In fact or in general, there are still many people who do not understand about this type and if you are one of them, this article is a lifesaver for you! Of course each lending procedure has its own rules and as with the bank, No Guarantor Loans also require some requirements. The difference is you do not have to have a credit reputation special and as the name implies, you do not need a guarantee. You must be sure of the following conditions:

You must be confident with your financial requirements

You must determine your financial position, at least for one semester in the future. This is a prerequisite to run your finances in accordance with what you expect. This will also be asked by the lender because they can really be guaranteed you seriously and will be responsible for the money you borrow.

You still have to have a certain financial feasibility

You can't be a "bum" and get the loan. You must meet certain requirements. Suppose you have to live in the UK and have a clear and legitimate source of income. If you are involved in illegal activities then you will not be able to approve. Your credit history may be reviewed which is not the only consideration but a strong sign of you as a borrower (so far).

Fill out an online application form

Of course you need to fill out a form but you do not have to worry because you will not be asked to fill in the "complicated columns" like you usually do when you're full. You must have an internet connection, of course! Fill in accordance with what you have in yourself. Do not lie and do not falsify anything.

A way to fix your credit history

For most people, applying for No Guarantor Loans is the best way to improve their credit history. By acquiring the loans, they can start from scratch; the money they need and show them able to take responsibility for what they borrow.

From this article you can address the important points about No Guarantor Loans and also their effect on your credit in general. The sooner you can get better quickly. Responsible financial activities will indirectly change your financial condition in a better direction. One thing you need to remember, borrow only from reputable online lenders. Good luck and get your money!

If you are over the age of 65 and still drive a car, you are one of 40 million seniors on the road in America, according to a study by a major consumer website. While driving your own car can be a pleasure and offer you a feeling of independence, it can be costly as well, especially when it comes to repairs and maintenance. However, there are several ways you can cut these costs and ease the financial pinch of owning a vehicle on a fixed income.

1. ​Keep Track of Maintenance Records

While some garages may give you a sticker for your windshield to remind you when your next oil change should take place, keeping careful written records of all your car's maintenance needs can uncover small problems before they turn into major disasters. It is wise to track fluid changes, tire rotations, and brake pad replacements so you can schedule the next date well in advance to avoid repairs caused by accidental negligence. This can be especially important if you own an older car or drive one with high mileage.

2. ​Shop Around for Special Deals

​If your car needs servicing and you do not have a regular mechanic, it may pay to shop around for deals that apply to you as a senior. Many shops offer daily deals for those 65 and over on services that include maintenance, tire replacement, and basic repairs. Review each deal carefully, as some may have hidden fees or exclusions that pop up at the time of payment. If you take your car in, remember to review the work order with the mechanic to ensure there are no additional costs that may negate a discount.

3. ​Ask Your Insurance Agent for Guidance

When it comes to finding repair and maintenance deals as a senior driver, you might not have to look any further than your insurance agent. He or she may be able to offer you extra insight on where to find the best deals or recommend a certified mechanic connected with the agency. Working with local insurance agents can yield considerable savings, as even large companies run hometown offices where you can chat with an insurance expert.

​Driving as a senior can present certain financial challenges, especially in the case of maintaining your car. However, deals, discounts, and a bit of diligence can help you cut costs.

It is inevitable for small businesses to require outside financing to grow. There are diverse funding options available such that it has become easy for individuals to get small business loans. Nevertheless, such variety of lending options can present a challenge in that it is hard for business owners to be sure of the choices they are making in terms of the best loan provider. ​The following 5 tips will help you increase your chances of finding the best small loan provider that aligns with your needs.

1. ​Establish your needs

Knowing what you need will determine the type of loan provider you choose. Different loan providers have varying terms and conditions. Being aware of what you need will help you establish whether taking a loan from a funding company is worth the struggle. Additionally, establishing your needs should also guide you to focus on a loan provider that offers loans based on your expected terms and conditions.

2. ​Have all the information about your business

​Prior to making any loan application, ensure that all important information about your business is ready. Usually financial documents are key documents that any loan provider would want to see. Other important and necessary information include the ownership of the business, employer identification number, taxpayer ID, as well as income information. Having this information increases your chances of getting the loan approved quickly.

3. ​Screen various online lenders

Nowadays, majority of online lending companies are engaging in predatory practices. If you are not careful, the chances of being conned are high. It is advisable to work with a loan provider that is comfortable offering loan terms upfront. Also, look for one who has security disclosures on their web pages as well as a physical address.

4. ​Carry out a true-cost analysis

​Different loan providers have varying repayment terms, and APRs (the term that describes how much money you are subject to paying including the fees and interest rates). These two factors form the basis for comparing loans from different providers. If you are looking for a merchant cash advance, you should be ready to pay higher APRs, and a weekly or daily repayment terms. Online term loans are high in terms of APRs when compared to financing from traditional banks. They however; attract low interest rates than merchant cash advances.

5. ​Know the focus of lenders

Lenders often use different factors to measure a person's eligibility for a small business loan. For example, debt service coverage ratio (DSCR) is an element of consideration in the event you are looking for loans that are competitive in price, and are of better terms, and lower rates. Other lenders look for a strong personal credit score, and yet others focus on the property or inventory of your business.​While it is tempting to apply for a loan from any online lender available, taking the time to understand the terms and conditions can save you much inconvenience. As such, you need to take the time to research about the lender’s reputation, and read through the fine print before applying for your loan.

Even if you have already called it quits and retire, there will still be situations where you have to apply for loans. And while your pension funds may provide you enough relief to get you through whatever issues you will be encountering, you will still need to get a little extra help on the financial side.

A considerable amount of retirees are applying for financial loans for many different reasons, and not just for paying hefty hospital and medication bills. Most of them just want to acquire a substantial amount of capital to jumpstart business ideas, or to fund excursions towards across the globe.

Still, acquiring debts come with a myriad of responsibilities. Ignoring these responsibilities may hinder you from fully enjoying your retirement. Apparently, it is best to settle these accounts the quickest way possible. And here are some ways you can do it.

​Get a debt consolidation loan

Do you have an idea for business startup you have been itching to establish? Chances are, you will be borrowing a little extra money to make this idea come to life. Then again, being able to break even and re-pay the initial debt you acquired takes time. Moreover, you will need to expect for much of your income to go towards paying the amount you borrowed in the first place.This, apparently, slows down your business’ growth and it makes it even harder for you to breakeven. Fortunately, you can always apply for a debt consolidation loan which will help you get out of a debt trap and help your business move forward.

​Cut your credit

​As much as you want to go on a never ending shopping spree, you will also need to keep tabs on how much you’re spending. Going all out with your credit cards might be a good idea when you’re travelling to a place where you have to shell out a great deal of money to experience excitement. But considering that you’re already retired, it is best to just limit your credit. Especially when you are still struggling with existing debts, you may need to keep your spending sprees to a minimum - at least until you can payoff the loans you have applied for.

​Maintain a strict budgeting regime

​Probably the best way you can handle your loans is to simply create a budget. After you’re through with it, you can now set how much you are willing to allocate towards debt servicing. A good 20 percent will do, if you’re really set on erasing your debts across the board.

​Secure an alternative income source

​If anything, you will need to have a contingency plan at the ready to keep you financially stable. Having an alternate source of income (getting a part-time job as a consultant, for instance) can actually help you stave off the messier aspects of debt. What’s more, having more than one income source can actually help you generate income to be used to pay off debts. This will ultimately safeguard you from going bankrupt during your retirement.

After working for a long time at a certain company or institution, seniors will encounter the inevitability of retirement. It is that phase in a professional’s life that is supposed to mark the pinnacle of one’s career. You have worked your way to the top, and once you have reached the peak, it would only be a matter of time before you can recede into a life that’s a whole nother world. The thought of being able to relax for the first time and without a care in the world can pretty much scare you. But this shouldn’t discourage seniors to do something worthwhile during their retirement.

In fact, retirees can always find ways to keep themselves occupied. And that’s only a matter of knowing what they really want to do in their time. But as most seniors aim to travel the world and savor every dish imaginable, some will still want to spend their time looking for places where they can invest their pension money.

It’s never too late to look for nifty financial ideas and arrive at certain solutions to achieving one’s investment goals. For sure, you won’t be doing this just to accumulate more wealth. You will be doing this for the sake of your children and your grandchildren. Amassing a fortune at an age where you should be spending your days at a remote island in the Bahamas is still pretty much possible. You only need to know how to invest your money in financial plans that matter to you.

Here’s a list to get you started.

​Set up a small business

At present, it has become easier for people to establish their businesses and secure an alternative source of income. For a lot of seniors, this means looking for ideas that will culminate in a plan for a small business.

What with social media and other technologies that make it easier for just about anyone to share information, it won’t be that difficult to create stores that sell whatever it is you are interested in.

Usually, financing your small business is one thing that you should need to focus on. Luckily for you, there are companies offering small business loans that will help entrepreneurs like you to start a venture without much of a heavy burden on your back.

Invest in stocks

Aside from setting up an enterprise, you can also invest your money in secured stocks. More often than not, a lot of retirees would get very fat pensions from government and private institutions. While you can always exhaust everything on a weekend roadtrip coast-to-coast, it is still best to set aside a portion to buy shares in companies that show a good standing in the stock exchange.

​Buy bonds

​Already have investments in corporate stocks? You might as well set your sights on more secured treasury bonds issued by the government. They don’t really promire hefty returns, but these bonds offer a good way to invest your money and keep it from being wasted on Margarita parties.

It can be easy to forget about the importance of saving up for retirement when it’s still decades away. This is especially true now that the retirement landscape is changing; the days of retiring at age 65 are becoming a thing of the past. Now that our life expectancies are increasing, people are able to work well into their seventies, and working from home is becoming more commonplace, we’re starting to rethink the best ways to save for retirement.

Part of this planning involves understanding how certain life decisions can affect your retirement savings. Here are a few personal choices that most people make during their lifetimes, and how they can influence your retirement savings decisions.

Building a Family

Without major reform, Social Security benefits will need to be cut by 23% in 2033. This means that you need to plan ahead to make sure you have enough money to retire comfortably without relying on Social Security checks. A significant part of this plan involves when (or if) you get married or have children.

Due to the skyrocketing costs of weddings nowadays, spending a significant amount of your earnings on a ﻿weddin﻿g and other big-ticket items generally causes you to have to retire later than people who save that money for retirement instead. Furthermore, if you don’t fix your credit, you run the risk of scrambling to pay off debts instead of funneling that money towards retirement.

Furthermore, especially for people with lower levels of income, having kids is often one of the biggest factors affecting retirement savings. For instance, if you have a child closer to middle age, it’s likely that you’ll need to work longer and cut back on retirement savings a bit to cover the child’s living – and, often, college – expenses.

On the other hand, if you finish having kids in your 20s or early 30s, you’ll often finish footing the bill for them by the time you reach middle age. The combination of higher earning power due to experience and no longer supporting your children equates to accumulating more money for retirement.

​Healthcare

A couple that retires at age 65 today can expect to spend about $245,000 on healthcare throughout retirement, making it especially important to be conscious of your decisions surrounding healthcare when planning for retirement.

Now that fewer employers are offering retirement health care benefits and health care costs are rapidly increasing, it’s becoming more important to think about what you want to do regarding catastrophic health care and long-term care costs when you retire. Once you’re no longer working, it’s likely that you’ll face increased costs for medical insurance coverage – despite Medicare. Because of this, consider buying supplemental Medigap insurance to pay Medicare deductibles and copayments, as well as to protect yourself against emergency health expenses.

You should also consider planning for retirement-age long-term care. You may need long-term care when physical or mental disabilities impair your ability to manage basic, everyday tasks. Unfortunately, this type of care can be expensive, especially as people are starting to live longer. Consider purchasing long-term care insurance to help offset this and factor it into your retirement income needs.

​High and Low Risk Investments

Different types of retirement investments carry different risks, so it’s imperative to understand those risks and how they can affect your retirement income to best set yourself up for a comfortable retirement. This is especially true considering that men have a 78% chance of living to the age of 75 and women have an 85% chance, as the decisions you make about investment risk now can affect your life for possibly decades after you retire.

Basically, investment risk is derived from fluctuations in the market that can result in depletion of your retirement savings. You can generally assume that market fluctuations will average out over time, but it’s important to consider how much time you have to save up.

Low risk investments provide lower returns and higher risk ones provide higher returns, so it can be tempting to put a lot of your retirement money into a high-risk investment. However, since the market doesn’t always provide positive returns and can provide negative returns for a few years at a time, it’s important to avoid high-risk investments when you’re close to retirement age. When you’re younger, you can afford the lulls associated with high-risk investing since there’s time to recoup losses. As you reach retirement age, it’s often a better strategy to have a mix of low- and high-risk investments to keep you comfortable.

Thinking about saving up for retirement may not be the most glamorous use of your time, but it will certainly pay off in the future. By paying attention to your life choices now, you can set yourself up for maximum comfort as you age.

What are some other important factors to consider regarding retirement savings?

When it comes to investing for retirement, everyone wants to ensure that they have the optimal financial strategy. Making the most of your investments to retire the way you want to, whether that entails travel, spending more time at home with family, relocating to a warmer climate or a foreign country, or just living comfortably where you are now, is a priority for almost everyone in the global workforce. Two methods for retirement saving are pension funds and property investments. There are advantage and disadvantages to each investment method.

Advantages to Pension Fund Investing

A retirement pension fund is the typical method of retirement savings and investing. For this reason, it’s often viewed as the safer investment bet when you’re planning for your retirement. Pensions rarely lose money that is invested into them, although they may not grow dramatically, either. There are also extensive tax benefits involved when putting your retirement investing into a pension fund. If you choose to use a company pension program, the money you contribute towards your retirement will be pre-tax.

While this reduces your total taxable income in the present, you will be forced to pay taxes on your retirement savings later in life when you go to withdraw. On the other hand, if you invest in a private pension fund, the likelihood that you’ll invest from your net-income (or post-tax income) is high, and your withdrawals during retirement will be completely tax free. Regardless of which fund you choose, having tax benefits on the front or back end of your investing is a definitive benefit of pension fund investing.

Another advantage to pension funds is that, in many cases, an employer will contribute an equal amount up to a certain percentage of your pay towards your pension fund. These match programs can drastically increase your overall retirement savings, and if you contribute wisely at the beginning of your career, you’ll be able to earn interest on a greater amount of funds invested for a longer period. These extended earnings have the potential to set you up nicely in your retirement.

Disadvantages to Pension Fund Investing

While pension funds do offer a secure way to invest and save for retirement, they can also be disadvantageous. The most notable disadvantage of pension funds is the lack of flexibility in when you can access your money. In most cases, you won’t be permitted to withdraw funds from your pension until you’re 55, and even then you’re subject to taxation. For those who are interested in possibly retiring early or taking an untraditional retirement in which they start a second career, go back to university, or choose to live internationally, these pension fund withdrawal limitations may be restricting.

Additionally, the performance of pension funds depends entirely on the investment of your assets. If you invest poorly, or in too conservative a way, your funds may not grow much, if at all. This means that your pension fund is essentially a glorified savings account with employer contribution and better than average interest. Still, for many, this isn’t enough for them to live the way they want to during their retirement.

Advantages to Property Investing

When you choose to invest your retirement funds in property rather than a traditional pension fund, you have significantly more flexibility when managing your investments. For example, you can monitor the real estate market to select the perfect property investment, and from there you can choose to either live there full time, use the property as a vacation space, or make even more money on your investment by setting it up as a rental property. If you ever want to sell your property, it is a physical asset and you have the capability to do so. Whether you’ve decided you’d like to use your funds earlier than planned, or you are ready to invest them in another market, selling property is much easier than cashing out your pension fund early.

Additionally, the property market has more flexibility with the levels it can fluctuate. You can purchase a property in a buyer’s market and sell for significantly more in a seller’s market, often making much more on your investment than you would have made had you put the same funds in a traditional pension fund.

Disadvantages to Property Investing

Admittedly, property investing is much less stable than pension funds. Property markets tend to fluctuate with some regularity and little to no warning. There are also more maintenance expenses and up front taxes involved with a property investment. These upfront expenses can often be a deterrent to those looking for investment opportunities, and few view an expensive property as a viable means to save for retirement as a result. Despite the inherent volatility of property investing, it can often be an excellent vehicle for those looking to invest or to access the return on their investments sooner than a pension fund would allow.

Should You Consider Overseas Property?

The answer to that is a glowing “yes, absolutely”. If you are going to go with property investing in spite of the inherent risk you should consider doing so abroad. Some countries like Romania can offer staggering returns of 7, 8 or even 9% annually. You could potentially diversify your overseas property investments over 4-5 developing countries (in which homes are very cheap in, with high annual rental yield) and minimize the risk, and be much better off upon pension.

You don’t have to worry about dealing with the nitty gritty. There are professionals in the field that specialize in dealing with foreigners. Lawyers, property agents, and international money transfer companies deal with tens of thousands of clients just like yourself.

What is the Bottom Line?

​To each his or her own. Both options are valid, it just depends on how risk averse you are, and of course, your financial status. No matter whether you choose to invest in property or a pension fund, be sure to consult a qualified adviser who can help you make the wisest choice based on every factor affecting your decision.

Retired Brains does not offer direct financial investment advice, nor do we affiliate ourselves with any particular financial advisers or firms in the United States or worldwide. Rather, the sole purpose of this article is to present educational, helpful information that can help you decide what kind of investing strategy is right for you in your retirement. If you are interested in learning more about property or pension fund investing, we recommend seeking out a reputable adviser or firm in your area for assistance.

It is no secret that temporary and part time jobs for retirees are becoming a normal part of the retirement process. Although some people view retirement as a time to solely embark on leisurely pursuits, others feel the urge to either remain professionally active to some degree--or, in the case of retirees with no previous official employment experience, join the workforce for the first time. There are many reasons retirees decide to pursue temporary and part time jobs. Some of these include:

Supplementing retirement income to pay essential bills

Social interaction

Saving for vacations, family events or other leisurely pursuits

Keeping mentally sharp and physically fit

No matter your reasons for wanting to find temporary and part time jobs, it is important to know that you have more options than ever before when it comes to landing the perfect retirement job.

Why Retired Workers are in Demand

More and more are opting to turn to workers with a more mature, loyal outlook on employment. Some of the reasons employers are gravitating toward retired workers to fill temporary and part time job positions include:

Low rates of absenteeism

Low likelihood to change jobs, which means higher job loyalty

Open minded to learning new skills

Punctuality and welcoming of responsibility

Willing to engage with customers sincerely

A positive attitude and pride in the job being done

This shift in attitude is plainly seen in the steady increase of retired workers in the job force. According to the United States Bureau of Labor Statistics (USBLS), retired workers currently comprise over 8% of the workforce. This number is expected to increase to 11% by 2022. Additionally, recent data from the USBLS shows that as life expectancy continues to increase, so does the amount of older retired workers in the workforce. Specifically, since 1985, the number of retired workers over the age of 75 has more than doubled from 3.6% to 8% currently.

Why Temporary and Part Time Retirement Jobs?

Although some retirees decide to continue working a full time career into their retirement years, we feel this is a decision best left to your individual needs and situation. There is something to be said for allowing yourself to enjoy your retirement as you see fit. The responsibility and, many times, stress accompanying full time career occupations can become more difficult to successfully manage as we age. However, the job can accentuate and compliment your leisure time, and not take away from them in any regard.

Many temporary and part time retirement jobs allow you the freedom to make your own schedule, as well as the other benefits of employment we have discussed already. What is more, many temporary and part time retirement jobs allow you to help other people in various capacities, which is always a wonderfully effective way to be involved and feel great doing it!

You might be asking yourself how you can go about finding jobs that allow you to choose your own schedule, and provide you the opportunity to embark on employment that compliments your retirement living? Well, let’s discuss that right now. ​

Using Shiftgig to Find Part Time or Temporary Retired Jobs

Shiftgig is in 12 cities located across the United States currently

Retired Brains has found a company that takes a uniquely effective approach to helping retirees find part time or temporary retirement jobs. Since 2012, Shiftgig has helped match businesses in the hospitality and service industries (so people-based businesses) with people seeking flexible, fun and fulfilling part time or temporary jobs.

Shiftgig helps make finding part time or temporary retired jobs easy. First, you fill out an application on their website. From there, a member of the Shiftgig team will reach out to you via email to set up an in person interview. If hired, you'll use their mobile app to browse available work and other specifics relating to the job you choose.

Shiftgig is currently located in 12 cities around the country: Atlanta, Chicago, Dallas, Houston, New York, Memphis, Miami, Milwaukee, Nashville, New Orleans, Phoenix and Tampa. However, their popularity means you should be on the lookout for them to put roots in your city soon. No matter where you look for and find part time or temporary retired jobs in your area, we hope that you find it. What is more, we hope it increases your quality of life by adding value to your retired years, while having some fun in the process!

​*Retired Brains is not an employment service, and does not offer job counseling or personalized employment advice. We simply strive to help boomers, seniors and retirees of all ages find resources that help add value to their lives. Retired Brains is not affiliated with Shiftgig, but find their platform to be unique and potentially helpful when looking for part time or temporary retirement job opportunities. Therefore, we always recommend doing your homework to make sure the job resources you choose are a good fit for your wants, needs, situation and of course, technological abilities. ​

With increases over the past several years in regulations protecting borrowers, reverse mortgages are being considered viable options for helping some people fill gaps in their retirement income. However, the question of, "Are reverse mortgages a good idea?", is solely dependent upon several factors. These factors relate directly to the individual or couple looking to enter into a reverse mortgage agreement.​If you are wondering are reverse mortgages a good idea, we welcome you to read this reverse mortgage information article and learn whether or not you may be a good candidate for one*. Reliable, unbiased information about reverse mortgages can be difficult to come by. If you are looking for trustworthy information about reverse mortgages, it is important to consult organizations that have no direct financial stake in whether or not you enter into a reverse mortgage agreement.

Information About Reverse Mortgages

According to the Federal Housing Administration, approximately 30,000 people entered into a reverse mortgage in 2016. This number is down significantly from the peak of the reverse mortgage boom in 2009, which saw over 115,000 of these types of home loans processed. During the boom of 2009, the reverse mortgage market was deregulated, which ended up causing serious issues for many borrowers.

However, increased lender regulation has afforded better protection for borrowers. Even with more protection, you still should ask yourself “Are reverse mortgages a good idea for me?” based on your specific situation--instead of relying on existing industry safeguards, which might not apply to your situation anyway when push comes to shove. The following information about reverse mortgages can help you decide whether or not you are an ideal candidate for a reverse mortgage…

Who is the Ideal Candidate for a Reverse Mortgage?

Someone in good health. According to the National Endowment for Financial Education, a good candidate for a reverse mortgage is in their late 60’s, and is in overall good health with over 15 years of life expectancy. Although the law states that all reverse mortgage borrowers must be at least 62 years of age, if you plan to ‘age in place’, which means being able to stay in your current home for the duration of your life, then you might be a good candidate for a reverse mortgage. This is because the loan costs you will accrue may significantly cut down on the amount of money you would receive upon the sale of your home. Should you not be able to maintain financial and maintenance obligations, or should your health falter and you need to sell your home before you pass away, you might not be left with much, if anything at all once the reverse mortgage is paid off.

Someone who can afford upkeep. Reverse mortgage lenders expect you to keep current on property taxes, insurance and maintenance while you remain in your home. Should you fall behind on any of these obligations, you can end up defaulting on the reverse mortgage and the lender may choose to foreclose. Additionally, if you end up being unable to maintain these terms and have to sell your home prematurely, you could end up with little to no money after the sale to find a new place to live. Therefore, it is extremely important to make sure your pension, Social Security benefits, retirement accounts, or any other sources of income are sufficient to cover both expected and unforeseen upkeep expenses that might arise.

Someone with a low debt and high equity. If you have a valuable home with significant equity, or that is paid off in full, then you might be a good candidate for a reverse mortgage. This is because you will remain in your home while receiving money to supplement your cost of living expenses. However, it is important to understand that by taking out a reverse mortgage, you are depleting the equity in your home. What is more, because your reverse mortgage will come due once you are no longer alive, you might be depleting the assets you will leave your heirs. If this is not a concern for you, then you might be a good candidate for a reverse mortgage.

Someone with stable retirement income. This especially applies to co-borrowers and borrowers with spouses who will be a widow or widower upon your passing. Keep in mind that in some cases, pension funds and other sources of retirement income stop when the principal passes away. In these cases the survivor not only loses a spouse, but also the spouse’s income. This makes it extremely important to plan for the surviving spouse’s ability to handle all financial obligations that will keep the reverse mortgage in good standing once his or her partner is gone. Although as of August 4, 2014, retirees (both borrowing and non-borrowing) cannot be foreclosed upon due to the death of their spouse alone, the lender can indeed foreclose if the surviving spouse cannot maintain financial obligations.

More Reverse Mortgage Information

Before applying for a federally insured reverse mortgage covered by the US. Department of Housing and Urban Development (HUD), you are required to meet with a counselor from an independent, government approved housing counseling agency. Your counselor will go over the loan’s cost, as well as any financial implications you should be aware of. This consultation can be incredibly helpful in deciding are reverse mortgages a good idea for your situation. You can visit HUD for a list of counselors, or call the agency at 1-800-569-4287 to learn more. Please note that counseling agencies usually charge for their services. However, their fees can be paid from the loan proceeds, and you cannot legally be turned away if you can’t afford the consultation fee.

Reverse Mortgage Alert: Find Reverse Mortgage Lenders

If you feel as though you would be an ideal candidate for a reverse mortgage, the next step is starting to shop around for the right lender. Retired Brains has found an excellent informational website called Reverse Mortgage Alert you can visit to assist with the shopping process. The Reverse Mortgage Alert website has some very useful information for first time borrowers that can help reduce the confusion and stress often associated with the reverse mortgage process. This includes compiling lender information, providing a reverse mortgage calculator, offering information on the pros and cons of reverse mortgages, and a very informative fact sheet to help empower you in your decision making process. Please visit Reverse Mortgage Alert to learn more.

*Retired Brains is not a reverse mortgage lender, and we do not provide direct or indirect advice on whether or not you should enter into a reverse mortgage agreement. Our sole purpose is to provide you with information that can help you decide if you would like to find out more about whether or not a reverse mortgage is right for you. Therefore, we cannot be held legally or financially liable for your personal decisions. If you have any questions about a current or potential reverse mortgage agreement, we urge you to contact a professional adviser who can help you find the answers you seek.

Resources/Info

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